1. Chapter 7 Organizational Structurespp. 98-111

2. Introduction to Business, Organizational Structures Slide 2 of 55 Learning Objectives After completing this chapter, you’ll be able to: 1.Explain 1.Explain how businesses organize for management. 2.List 2.List three levels of management and compare their responsibilities. continued

3. Introduction to Business, Organizational Structures Slide 3 of 55 Learning Objectives After completing this chapter, you’ll be able to: 3.Name 3.Name the four functions of management. 4.Analyze 4.Analyze if a managerial position is for you.

4. Introduction to Business, Organizational Structures Slide 4 of 55 Why It’s Important Understanding business organization and management is key to knowing how a company is run.

5. Introduction to Business, Organizational Structures Slide 5 of 55 Key Words management plan organizational chart line authority centralized organization decentralized organization departmentalization continued

6. Introduction to Business, Organizational Structures Slide 6 of 55 Key Words top-level managers middle managers operational managers

7. Introduction to Business, Organizational Structures Slide 7 of 55 Managerial Structures A management plan divides a company into different departments run by different managers.

8. Introduction to Business, Organizational Structures Slide 8 of 55 Managerial Structures Companies use an organizational chart to show how the business is structured and who is in charge of whom.

9. Introduction to Business, Organizational Structures Slide 9 of 55 Managerial Structures One way to organize management is called line authority. Managers at the top of the organization are in charge of those beneath them.

10. Introduction to Business, Organizational Structures Slide 10 of 55 Managerial Structures Centralized organization puts authority in one place, with top management.

11. Introduction to Business, Organizational Structures Slide 11 of 55 Managerial Structures Decentralized organization gives authority to a number of different managers to run their own departments.

12. Introduction to Business, Organizational Structures Slide 12 of 55 Figure 7.1 WATERFOWL MANAGEMENT PLAN Fifty-three percent of the original 221 million wetland acres found in the United States has been destroyed. The waterfowl depend upon the wetlands. The North American Waterfowl Management Plan is a joint venture to preserve migratory birds and their habitats. How might this management plan save the habitats?

13. Introduction to Business, Organizational Structures Slide 13 of 55 Formal Structure Formal structures are usually departmentalized. Departmentalization divides responsibility among specific units, or departments.

14. Introduction to Business, Organizational Structures Slide 14 of 55 Informal Structure Smaller businesses can be run more informally. If a business does not need a big marketing or distribution network, it does not need a lot of managers.

15. Introduction to Business, Organizational Structures Slide 15 of 55 Fast Review 1.How does a centralized organization differ from a decentralized organization? 2.Give an example of departmentalization.

16. Introduction to Business, Organizational Structures Slide 16 of 55 Levels of Management Most businesses have three levels of managers: Top-level managers Middle managers Operational managers

17. Introduction to Business, Organizational Structures Slide 17 of 55 Levels of Management Top-level managers are responsible for setting goals and planning for the future.

18. Introduction to Business, Organizational Structures Slide 18 of 55 Levels of Management Middle managers carry out the decisions of top management.

19. Introduction to Business, Organizational Structures Slide 19 of 55 Levels of Management Operational managers are responsible for the daily operations of the business.

20. Introduction to Business, Organizational Structures Slide 20 of 55 Graphic Organizer Levels of Management Graphic Organizer TOP LEVEL MANAGERSOPERATIONALMANAGERSMIDDLEMANAGERS Set goals Plan for the future Carry out the decisions oftop management Plan and control operations Oversee daily operations Supervise workers to meet deadlines

21. Introduction to Business, Organizational Structures Slide 21 of 55 Fast Review 1.What are three levels of management? 2.Which of the three levels is most involved in the day-to-day supervision of employees?

22. Introduction to Business, Organizational Structures Slide 22 of 55 Planning A good manager has four different functions: Planning Organizing Leading Controlling

23. Introduction to Business, Organizational Structures Slide 23 of 55 Planning Long-range planning involves top-level management deciding how the company should perform.

24. Introduction to Business, Organizational Structures Slide 24 of 55 Planning As part of the planning process, management must answer the following key questions: What must be done? Who will do it? continued

25. Introduction to Business, Organizational Structures Slide 25 of 55 Planning How will the work be grouped? Who supervises whom? Who makes decisions about the work to be done?

26. Introduction to Business, Organizational Structures Slide 26 of 55 Planning The key questions of the planning process are applied and answered when you get together with your management team.

27. Introduction to Business, Organizational Structures Slide 27 of 55 Organizing To organize a business plan you need to assign managers different tasks and coordinate their activities.

28. Introduction to Business, Organizational Structures Slide 28 of 55 Organizing Each manager needs to organize his or her department and know what the other managers are doing. You need to determine who makes decisions and who answers to whom.

29. Introduction to Business, Organizational Structures Slide 29 of 55 Leading Good management also requires good leadership. You have to create a vision of your company to inspire your employees.

30. Introduction to Business, Organizational Structures Slide 30 of 55 Leading You need to set standards so your managers know their goals. You need to communicate with them to provide guidance and resolve conflicts.

31. Introduction to Business, Organizational Structures Slide 31 of 55 Leading You especially want to encourage your employees. Most companies offer incentives such as pay raises and promotions.

32. Introduction to Business, Organizational Structures Slide 32 of 55 Controlling Controlling means keeping the company on track and making sure all goals are met.

33. Introduction to Business, Organizational Structures Slide 33 of 55 Controlling You have to keep track of the budget, the schedule, and the quality of the product. You also have to monitor your employees and review their performance.

34. Introduction to Business, Organizational Structures Slide 34 of 55 Controlling Controlling also involves monitoring customer satisfaction.

35. Introduction to Business, Organizational Structures Slide 35 of 55 Figure 7.2 MANAGEMENT FUNCTIONS Managers carry out four different functions. Which function involves coordinating resources?

36. Introduction to Business, Organizational Structures Slide 36 of 55 Fast Review 1.What are the four functions of management? 2.What is a manager’s objective in leading?

37. Introduction to Business, Organizational Structures Slide 37 of 55 Is Being a Manager for You? Most managers begin their careers as company employees. They’re promoted after they have gained experience and have shown certain leadership qualities.

38. Introduction to Business, Organizational Structures Slide 38 of 55 Is Being a Manager for You? Managerial qualities include: Ability to perform varied activities Ability to work under pressure Effective communication Interpersonal skills Ability to gather and use information

39. Introduction to Business, Organizational Structures Slide 39 of 55 Advantages to Being a Manager Managers usually earn more money than employees in non-management jobs. Being a manager has prestige.

40. Introduction to Business, Organizational Structures Slide 40 of 55 Advantages to Being a Manager Because managers are leaders, they have more influence than other employees on how the company is run.

41. Introduction to Business, Organizational Structures Slide 41 of 55 Advantages to Being a Manager Managers also have greater control over their time and how they will spend it.

42. Introduction to Business, Organizational Structures Slide 42 of 55 Disadvantages to Being a Manager Managers get the blame when things go wrong, even if another employee caused the problem.

43. Introduction to Business, Organizational Structures Slide 43 of 55 Disadvantages to Being a Manager When managers make mistakes, they can be more costly than other employees’ mistakes because their decisions affect many workers.

44. Introduction to Business, Organizational Structures Slide 44 of 55 Disadvantages to Being a Manager Some managers feel their relationship with lower-level employees is different than their relationship with fellow managers.

45. Introduction to Business, Organizational Structures Slide 45 of 55 Fast Review 1.What are five qualities or skills a manager should have? 2.What are the advantages and disadvantages of being a manager?

46. Introduction to Business, Organizational Structures Slide 46 of 55 In business, collaboration is key. Working in a team requires flexibility, creativity, good communication, and shared goals. continued Developing Teamwork Business Building Blocks

47. Introduction to Business, Organizational Structures Slide 47 of 55 In fact, those characteristics also describe improvisation—to arrange something offhand. continued Developing Teamwork Business Building Blocks

48. Introduction to Business, Organizational Structures Slide 48 of 55 To accomplish a goal in a company, people must work together. continued Developing Teamwork Business Building Blocks

49. Introduction to Business, Organizational Structures Slide 49 of 55 Working as a team is better than working separately. Listen to each other as you brainstorm for solutions. continued Tips on “Improving” Your Teamwork Business Building Blocks

50. Introduction to Business, Organizational Structures Slide 50 of 55 Engage in problem solving while creating and offering solutions within constraints. Tips on “Improving” Your Teamwork Business Building Blocks

51. Introduction to Business, Organizational Structures Slide 51 of 55 How do you suppose a lattice organization is run? continued

52. Introduction to Business, Organizational Structures Slide 52 of 55 What are the benefits of a management style that has no chain of command? continued

53. Introduction to Business, Organizational Structures Slide 53 of 55 What are the challenges of a team formed of associates rather than employees? continued

54. Introduction to Business, Organizational Structures Slide 54 of 55 In terms of teamwork, what does it mean when a person takes an action that is “below the waterline”?

55. End of Chapter 7 Organizational Structure